Question 1

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

The entire sequence of activities that add value to a company's products and services is called ________.

Accepted Answer

A) the value chain 
B) the planning process 
C) TQM production chain 
D) Enterprise Resource Planning 
A) the value chain 
B) the planning process 
C) TQM production chain 
D) Enterprise Resource Planning

Question 3

Evaluating a company's performance by its economic,social and environmental impact is called the ________.

Accepted Answer

A) triple bottom line 
B) whole company concept 
C) value chain 
D) downstream cost 
A) triple bottom line 
B) whole company concept 
C) value chain 
D) downstream cost

Question 4

Dakota,Inc.is a merchandiser of medallions.The company sold 15,100 units during the year.The company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 558,000 \
\hline \text { Purchases (excluding Freight In) } & 280,000 \
\hline \text { Selling and Administrative Expenses } & 66,000 \
\hline \text { Freight In } & 13,000 \
\hline \text { Beginning Merchandise Inventory } & 52,000 \
\hline \text { Ending Merchandise Inventory } & 54,900 \
\hline
\end{array}$$ What is the unit cost per item sold? (Round your answer to the nearest cent.)

Accepted Answer

A) $19.21 
B) $15.77 
C) $22.85 
D) $19.40 
A) $19.21 
B) $15.77 
C) $22.85 
D) $19.40

Question 5

Which of the following will most likely be considered an indirect material cost for a bakery?

Accepted Answer

A) spices 
B) flour 
C) milk 
D) eggs 
A) spices 
B) flour 
C) milk 
D) eggs

Question 6

Haggan Manufacturing,Inc.provided the following information for the year:
 $$\begin{array} { | l | r | } 
\hline \text { Purchases - Direct Materials } & \$ 270,000 \
\hline \text { Plant Utilities and Insurance } & 202,500 \
\hline \text { Indirect Materials } & 35,250 \
\hline \text { Indirect Labor } & 14,250 \
\hline \text { Ending Balance - Work-in-Process Inventory } & 42,000 \
\hline \text { Ending Balance - Direct Materials } & 45,000 \
\hline \text { Direct Labor } & 352,500 \
\hline \text { Depreciation on Factory Plant and Equipment } & 18,000 \
\hline \text { Beginning Balance - Work-in-Process Inventory } & 18,000 \
\hline \text { Beginning Balance - Direct Materials } & 63,000 \
\hline
\end{array}$$ Required: Prepare a schedule of the cost of goods manufactured using the following format:
 \[\begin{array}{l}
\text { Schedule of Cost of Goods Manufactured }\
\begin{array} { | l | l | l | l | } 
\hline & & & \
\hline \text { Beginning Work-in-Process Inventory } &~~~~~~~~~~~~~&~~~~~~~~~~~~~&~~~~~~~~~~~~~ \
\hline \text { Direct Materials Used: } & & & \
\hline \text { Beginning Direct Materials } & & & \
\hline \text { Purchases of Direct Materials } & & & \
\hline \text { Direct Materials Available for Use } & & & \
\hline \text { Ending Direct Materials } & & & \
\hline \text { Direct Materials Used } & & & \
\hline \text { Direct Labor } & & & \
\hline \text { Manufacturing Overhead: } & & & \
\hline \text { Indirect Materials } & & & \
\hline \text { Indirect Labor } & & & \
\hline \text { Depreciation-Plant and Equipment } & & & \
\hline \text { Plant Utilities and Insurance } & & & \
\hline \text { Total Manufacturing Overhead } & & & \
\hline \text { Total Manufacturing Costs Incurred } & & & \
\text { During the Year } & & & \
\hline \text { Total Manufacturing Costs to Account } & & & \
\text { For } & & & \
\hline \text { Ending Work-in-Process Inventory } & & & \
\hline \text { Cost of Goods Manufactured } & & & \
\hline
\end{array}
\end{array}\]

Accepted Answer

\[\begin{array}{l}
\text { Schedule of C

Question 7

For decision-making purposes,________ are often divided into prime costs and conversion costs.

Accepted Answer

A) fixed costs 
B) product costs 
C) period costs 
D) sunk costs 
A) fixed costs 
B) product costs 
C) period costs 
D) sunk costs

Question 8

In a manufacturing company,advertising and marketing costs are examples of period costs.

Accepted Answer

A) True 
 B)False

Question 9

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Accepted Answer

A) True 
 B)False

Question 10

Partial income statements of Company A and Company B are provided below: Company A
$\begin{array}{|l|r|r|}
\hline \text { Revenue } & & \
\hline \text { Expenses: } & & \
\hline \text { Utilities Expense } & \$ 50,000 \
\hline \text { Salaries Expense } & 15,000 & \
\hline \text { Rent Expense } & \underline{3,700} \
\hline\text { Total Expenses }&&23,700\
\hline\text { Operating Income }&&\$56,300\
\hline
\end{array}$ Company B
$$\begin{array} { | l | r | r | } 
\hline \text { Revenue } & & \$ 50,000 \
\hline \text { Cost of Goods Sold: } & & \
\hline \text { Beginning Merchandise Inventory } & \$ 4,000 & \
\hline \text { Purchases and Freight In } & 23,000 & \
\hline \text { Cost of Goods Available for Sale } & 27,000 & \
\hline \text { Ending Merchandise Inventory } & \underline { ( 5,500 } & \
\hline \text { Cost of Goods Sold } & & 21,500 \
\hline \text { Gross Profit } & & \$ 28,500 \
\hline
\end{array}$$ Which of the following statements is true?

Accepted Answer

A) Company A is a merchandising company. 
B) Company B is a manufacturing company. 
C) Company A is a manufacturing company. 
D) Company A is a service company. 
A) Company A is a merchandising company. 
B) Company B is a manufacturing company. 
C) Company A is a manufacturing company. 
D) Company A is a service company.

Question 11

Ryker Manufacturing,Inc.provided the following information for the year: $\begin{array}{|l|r|}
\hline \text { Purchases }- \text { Direct Materials } & \$ 91,000 \
\hline \text { Plant Utilities and Insurance } & 66,000 \
\hline \text { Indirect Materials Used } & 11,240 \
\hline \text { Indirect Labor } & 4830 \
\hline \text { Direct Materials Used in Production } & 98,000 \\hline \text { Direct Labor } & 118,500 \
\hline \text { Depreciation on Factory Plant and Equipment } & 8000 \
\hline \text { Cost of Goods Manufactured } & 292,000 \
\hline \text { Cost of Goods Sold } & 290,000\
\hline
\end{array}$ The inventory account balances as of January 1 are given below.
$$\begin{array} { | l | r | } 
\hline \text { Direct Materials } & \$ 45,000 \
\hline \text { Work-in-Progress Inventory } & 11,000 \
\hline \text { Finished Goods Inventory } & 304,570 \
\hline
\end{array}$$ What is the ending balance in the Finished Goods Inventory?

Accepted Answer

A) $304,570 
B) $302,570 
C) $306,570 
D) $596,570 
A) $304,570 
B) $302,570 
C) $306,570 
D) $596,570

Question 12

Silver Crafts,Inc.purchases and sells bracelets.The following information summarizes the company's operating activities for the year: $$\begin{array} { | l | r | } 
\hline \text { Selling and Administrative Expenses } & \$ 5300 \
\hline \text { Purchases } & 157,000 \
\hline \text { Sales Revenue } & 785,000 \
\hline \text { Merchandise Inventory, January 1 } & 2350 \
\hline \text { Merchandise Inventory, December 31 } & 38,350 \
\hline
\end{array}$$ If the company sold 7900 units of bracelets during the year,how much is the cost for one bracelet? (Round your answer to the nearest cent.)

Accepted Answer

A) $19.87 
B) $15.32 
C) $20.17 
D) $5.15 
A) $19.87 
B) $15.32 
C) $20.17 
D) $5.15

Question 13

Which of the following would be included as manufacturing overhead for a manufacturing company?

Accepted Answer

A) direct materials cost 
B) indirect materials cost 
C) direct labor 
D) advertising 
A) direct materials cost 
B) indirect materials cost 
C) direct labor 
D) advertising

Question 14

Which of the following is the primary focus of financial accounting?

Accepted Answer

A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing information to managers to assist in planning,directing and controlling operations 
D) providing highly detailed information on product lines,regions,and divisions 
A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing information to managers to assist in planning,directing and controlling operations 
D) providing highly detailed information on product lines,regions,and divisions

Question 15

For a manufacturer,rent paid for an office building is an example of a period cost.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following correctly describes Just-in-Time (JIT)Management?

Accepted Answer

A) It is a production approach that maintains surplus goods at each stage of manufacture. 
B) It helps managers cut costs by speeding the transformation of raw materials into finished products.. 
C) It is a cost management approach that focuses on maintaining large finished goods inventory levels. 
D) It is an inventory approach that stockpiles raw materials to protect against supply interruptions. 
A) It is a production approach that maintains surplus goods at each stage of manufacture. 
B) It helps managers cut costs by speeding the transformation of raw materials into finished products.. 
C) It is a cost management approach that focuses on maintaining large finished goods inventory levels. 
D) It is an inventory approach that stockpiles raw materials to protect against supply interruptions.

Question 17

The wages of factory janitors are considered to be direct labor costs because they are directly related to the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 18

The managerial role that involves the day-to-day running of the business is the ________.

Accepted Answer

A) directing function 
B) planning function 
C) controlling function 
D) strategic planning function 
A) directing function 
B) planning function 
C) controlling function 
D) strategic planning function

Question 19

Which of the following formulas represent cost of goods sold for a merchandising business?

Accepted Answer

A) Beginning Merchandise Inventory - Ending Merchandise Inventory = Cost of Goods Sold 
B) Purchases and Freight In + Ending Merchandise Inventory = Cost of Goods Sold 
C) Ending Merchandise Inventory + Purchases and Freight In - Beginning Merchandise Inventory = Cost of Goods Sold 
D) Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold 
A) Beginning Merchandise Inventory - Ending Merchandise Inventory = Cost of Goods Sold 
B) Purchases and Freight In + Ending Merchandise Inventory = Cost of Goods Sold 
C) Ending Merchandise Inventory + Purchases and Freight In - Beginning Merchandise Inventory = Cost of Goods Sold 
D) Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold

Question 20

Noble,Inc.purchases each unit of product X for $100 and can sell it in the market for $135.The price of the product for Noble would be $100.

Accepted Answer

A) True 
 B)False

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

The entire sequence of activities that add value to a company's products and services is called ________.

Evaluating a company's performance by its economic,social and environmental impact is called the ________.

Which of the following will most likely be considered an indirect material cost for a bakery?

For decision-making purposes,________ are often divided into prime costs and conversion costs.

In a manufacturing company,advertising and marketing costs are examples of period costs.

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Which of the following would be included as manufacturing overhead for a manufacturing company?

Which of the following is the primary focus of financial accounting?

For a manufacturer,rent paid for an office building is an example of a period cost.

Which of the following correctly describes Just-in-Time (JIT)Management?

The wages of factory janitors are considered to be direct labor costs because they are directly related to the manufacturing process.

The managerial role that involves the day-to-day running of the business is the ________.

Which of the following formulas represent cost of goods sold for a merchandising business?

Noble,Inc.purchases each unit of product X for $100 and can sell it in the market for $135.The price of the product for Noble would be $100.

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 16: Introduction to Managerial Accounting

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

The entire sequence of activities that add value to a company's products and services is called ________.

Evaluating a company's performance by its economic,social and environmental impact is called the ________.

Which of the following will most likely be considered an indirect material cost for a bakery?

For decision-making purposes,________ are often divided into prime costs and conversion costs.

In a manufacturing company,advertising and marketing costs are examples of period costs.

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Which of the following would be included as manufacturing overhead for a manufacturing company?

Which of the following is the primary focus of financial accounting?

For a manufacturer,rent paid for an office building is an example of a period cost.

Which of the following correctly describes Just-in-Time (JIT)Management?

The wages of factory janitors are considered to be direct labor costs because they are directly related to the manufacturing process.

The managerial role that involves the day-to-day running of the business is the ________.

Which of the following formulas represent cost of goods sold for a merchandising business?

Noble,Inc.purchases each unit of product X for $100 and can sell it in the market for $135.The price of the product for Noble would be $100.

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters